De­cod­ing SEIS for agents

Un­der the For­eign Trade Pol­icy 2015-2020, some ben­e­fits were an­nounced in the form of Duty Credit Scrips by the Min­istry of Com­merce for the Ser­vices Sec­tor un­der Ser­vices Ex­port from In­dia Scheme (SEIS), which has been in­creased from 5 per cent to 7 per

TravTalk - India - - ASSOCIATIONTALK -

What is SEIS?

The gov­ern­ment gave ex­porters sta­tus to the tourism in­dus­try and tourism or­gan­i­sa­tions which were earn­ing for­eign ex­change. This led to tour op­er­a­tors and oth­ers earn­ing Forex to im­port duty free un­der Ex­port Pro­mo­tion Cap­i­tal Goods (EPCG), af­ter which they gave us SFIS li­cense. This was 10 per cent of the Forex earned dur­ing the pre­vi­ous year. Af­ter that it was con­verted into SEIS li­censes from April 2015. Un­der SEIS, the in­cen­tive was brought down to 5 per cent but the Gov­ern­ment al­lowed tour op­er­a­tors and hote­liers to sell their li­censes in the open mar­ket. This five per cent in­cen­tive came in at a time when the tourism in­dus­try was re­ally fac­ing prob­lems. Be­cause of this, the com­pa­nies are show­ing some prof­its. From Nov 1, 2017, this in­cen­tive has been in­creased to seven per cent for tour op­er­a­tors and five per cent for the ho­tels. Since we can sell it in the open mar­ket, it’s a good in­cen­tive to the tour op­er­a­tors.

Why it is ben­e­fi­cial?

SEIS is a good ini­tia­tive by the gov­ern­ment, where they have ac­knowl­edged that tourism is a prime body, which earns a valu­able for­eign ex­change. To en­cour­age the tour op­er­a­tors bring­ing in for­eign ex­change, they have given this ben­e­fit. It was ear­lier five per cent, which they used to give in the form of duty credit scrips, which in turn could be sold in the mar­ket to the im­porters. This way the tour op­er­a­tors could make some money and make some profit. Now this ben­e­fit has been in­creased. From 5 per cent, it has in­creased to 7 per cent, which is a good ini­tia­tive by the gov­ern­ment and this will be ap­pli­ca­ble from Novem­ber 1, 2017, and is valid till March 31, 2018. Af­ter this it will be re­viewed again for the next year. We have asked our mem­bers to avail this ben­e­fit in large num­bers and have even re­ferred con­sul­tants who can help them with the same.

How it can be availed?

The ben­e­fits un­der the SEIS scheme has been avail­able by tour op­er­a­tors for some years now. IATO has cir­cu­lated this a num­ber of times. In May last year, we had called ex­perts to give de­tails of ev­ery­thing. There is a lot of pa­per­work for get­ting th­ese ben­e­fits and smaller agents do not want to get into this. This is one of the rea­sons why many op­er­a­tors are not tak­ing th­ese ben­e­fits. While it is a lengthy process, it is worth the ef­fort be­cause the duty draw­back which was five per cent, has been in­creased to seven per cent from Nov 1, 2017, on the net for­eign ex­change earned. We are also try­ing to tell our mem­bers who are earn­ing for­eign ex­change that they must go and avail this ben­e­fit. There are peo­ple who are do­ing this for op­er­a­tors and charg­ing money for the same, and they can help them in get­ting the re­quired doc­u­ments. We have asked our mem­bers to get in touch with them and ne­go­ti­ate the rates to smoothly ap­ply for the ben­e­fits.

Sarab Jit Singh In­dia Travel Award Win­ner and Man­ag­ing Di­rec­tor, Trav­elite In­dia and KTC In­dia

Pronab Sarkar Pres­i­dent IATO

Ra­jiv Mehra Vice Pres­i­dent IATO

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.